India lost its position as the world’s fastest-growing major manufacturing economy in November as factory activity slowed more than anticipated. The HSBC Manufacturing Purchasing Managers’ Index (PMI) dropped to 56.6, a nine-month low from October’s 59.2, marking one of the steepest month-on-month declines in the region. Although still indicating expansion, the slowdown allowed Thailand to overtake India, with its PMI rising to 56.8, the strongest in over two-and-a-half years, supported by improved business sentiment and expectations of stronger economic conditions.
Across ASEAN, manufacturing growth continued for a third consecutive month, with the bloc’s PMI reaching 53. Malaysia returned to expansion for the first time in three years, while Vietnam and Indonesia posted solid gains due to better supply conditions and optimistic future orders. The Philippines was an exception, slipping to its weakest reading since 2021 despite rising confidence from new projects.
Globally, China’s manufacturing slipped below 50, and Japan and South Korea remained in contraction, though optimism for the year ahead increased. In the West, the eurozone fell to 49.6, the US eased to 52.2, and the UK returned to expansion at 50.2. India’s business optimism dropped to a 3.5-year low amid rising competition concerns, even as output growth remained expected.
Worldwide, manufacturing PMI stood at 50.5, with Thailand, Brazil, and Colombia among the most optimistic economies.
